Tax on European Marie Curie IF (Host institution in UK)

by Malcolm Mistry
2 min read Jun 17, 2023

Dear All,

I have been in the UK for nearly a year now as a MSCA IF. My host institution has been paying me a gross monthly salary of 5650 GBP (I have not opted for the USS pension scheme, and have a family, so the gross amount may vary a bit for other research fellows in UK).

My question is about the "tax paid" that appears in my monthly salary slip (Not the NI Contribution, but the Tax). This monthly tax amount is 1230 GBP, which equates to about 21.5%. The tax code used by the University is 1257L.

Now I understand that the type of MSCA contract can vary by country. For instance, in Italy where I worked earlier, a MSCA IF gets an assegno di ricerca contract that is not taxed (no IRPEF, only social security INPS iis deducted by the host institution).

Could anyone please advise me if the tax that I am paying in the UK as a MSCA IF and UK tax resident is correct? I did ask my host institution and their response was that they have to use the tax code provided by the HMRC. In this case, the 1257L appears to be a standard tax code for a University researcher. So if as a MSCA IF I shouldn't be paying a tax or be in a lower tax regime, what do I need to do to correct my tax situation?

Thanks and regards,

Malcolm

1 Comments

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Judit Horváth
Jul 24, 2023

Dear Malcolm,

I can tell you a few things about tax exemption for researchers. It depends on a couple of factors if you are eligible. And even if so, it will not happen automatically. (Unlike in Italy, as you write.)

 

First, check the Double Taxation Convention between your home country and the UK at https://www.gov.uk/government/collections/tax-treaties

Look for `ARTICLE 20 Lecturers and Researchers`.

Be careful if one of the conditions says `The period of this visit does not exceed two years`, then they really mean it. You are not allowed to stay one day longer (or arrive earlier) if you want to be eligible. They will know it because you will have to return a P85 form after you leave the UK. (This form will ask questions like the date you left, if you are still being paid from the UK, or if you left family members, and how often you are planning to return in the following 3 years.)

 

If you think that you meet all the criteria, then you have to write to HMRC and ask for an `NT` tax code (= NO TAX). If they agree, they will send your new tax code to the University, and you will get back the tax deduced so far.

There is no form for this claim, so just write an official letter addressed to `Pay As You Earn and Self-Assessment / HM Revenue and Customs / BX9 1AS / United Kingdom`. Explain one by one how you think you meet the criteria in the Tax Treaty. Attach copies like proof for your nationality, tax ID number in your home country, work contract in the UK, NINO, boarding pass with the date of your arrival. I also attached the Grant Agreement Data Sheet.

Before sending it, you can ask someone from `Payroll` at your University to proofread your letter. (In my case they offered it for me when I discussed my situation with them.)

I wish you a good luck!

Judit